Transcript What you need to know — Murray Baird

Charity regulation
Good governance and healthy, trusted
charities
Murray Baird
Assistant Commissioner General Counsel
– Administer the ACNC
and Charities Act
– transition planning to
the ATO and ASIC
The reports of my death are
greatly exaggerated.
- Mark Twain
Scope of the sector
• 600,000 not-for-profit groups
• 60,000 charities (welfare, education,
religion and other recognised charities)
• 4% of GDP/$43b.
• 7.8% growth p.a.
• One million employees – 8% of
employees
• 4.6m volunteers
Towards Charity Regulation
- Slow Train Coming
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2001 Definition of Charities
2008 Disclosure Regimes for Charities
and NFP Organisations
2010 Productivity Commission :
Contribution of the Not-for Profit Sector
2010 National Compact
2010 Henry Review
2010 Senate Economic Legislation
Committee inquiry
2012 ACNC Act
2013 Charities Act
Charities Commission
Registration Compliance
Reporting
The governance standards
A minimal level of assurance that they meet
community expectations:
• Not for Profit
• Accountable to members
• Comply with laws
• Suitable directors
• Directors duties
Duties
• reasonable care and diligence
• honestly in the best interests of the charity and for its charitable
purposes
• not to misuse their position as a responsible person
• not to misuse information they gain in their role as a responsible
person
• to disclose conflicts of interest
• to ensure that the financial affairs of the charity are managed
responsibly
• not to allow the charity to operate while it is insolvent.
Our regulatory approach
“The ACNC begins from a
presumption that charities act
honestly and prudently.
However, we will take decisive
action when a charity acts
dishonestly and puts public
trust and confidence at risk,”
Deregistration
Graduated Sanctions
Investigation
Assistance
Guidance
Resources